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Unlicensed Physician Sued For Defrauding Patients

Attorney General Spitzer today announced a lawsuit against a Park Avenue cosmetic surgeon who defrauded his patients after the state stripped him of his license to practice medicine in New York.

The lawsuit against Dr. David Haim Ostad alleges that he accepted tens of thousands of dollars in pre-payments for cosmetic surgery from patients and failed to provide the procedures or refund patients money after his license was revoked.

The complaint alleges that, rather than informing patients of the license revocation and referring patients to other doctors, Ostad continued to schedule surgeries that he could not perform.

As a result, one patient lost over $40,000 in pre-payment for plastic surgery. Other patients also lost thousands of dollars.

Ostads license to practice medicine in New York was revoked by the State Board for Professional Medical Conduct in July 2005, based on medical negligence, incompetence and failure to maintain adequate medical records, among other charges.

The lawsuit seeks a court order to compel Ostad and two companies he owned - - both named Park Avenue Plastic Surgery - - to provide refunds to these patients and produce an accounting of other patients who also pre-paid for services but did not receive services. The suit also seeks to prevent Ostad and his companies from transferring any financial assets until he provides funds for patient restitution.